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Article

Italy and the European Union  

Federiga Bindi

Italy is a founding member state of the European Coal and Steel Community (ECSC) and, subsequently, the European Economic Community (EEC). At the time, membership meant anchoring the newborn Italian democracy, regaining international respectability after the Fascist period renewed vest internationally , and securing much-needed economic support to boost development. While in the 1950s the left side of the political spectrum vehemently opposed ECSC/EEC membership, starting with the late 1980s, European integration became the most important pillar of Italian foreign policy, an issue of shared consensus among different partiesa. The golden period for Italy – that is the phase when Italy was at the peak of its influence in the Communities - was the decade ranging from the mid 1980s to the mid 1990s,. At the time, Italian politicians such as Giulio Andreotti played fundamental roles in key moments of EEC/EU history: enlargement to the south, the single market, the Treaty of the European Union, and especially the creation of the euro are all key events in the history of the European Union which is safe to say would have never happened without the skillful contribution of Italy’s key government actors of the time. As European integration started again to be a contentious issue in domestic politics, so declined Italy’s influence. In more recent years: despite Italy’s formal status as a “big” member of the EU, Rome became less relevant than Madrid in EU decision making procedures. The parochial attitude of Italian elites, the incapacity of long-term programming, and relative government instability are all factors that have contributed to reducing the role of Italy in the EU.

Article

Cyprus and the European Union  

Stelios Stavridis and Charalambos Tsardanidis

The Republic of Cyprus (or Cyprus) joined the European Union (EU) in May 2004 and adopted the single currency (the euro) in 2008. This article consists of three parts: it begins with a historical contextualization, explaining the reasons for Cyprus’ application for an Association Agreement with the (then) European Economic Community (EEC), and also examining the latter´s reaction and policy towards the 1974 Turkish invasion following a failed coup d´état against the Makarios Presidency that has led to a divided island since then (Part 1). In brief, what is known as the “Cyprus Problem.” This part also looks at the evolution of the Association Agreement during the period since 1975 which ended with the conclusion of a customs union Agreement between Cyprus and the European Community in 1987. The article next turns to an analysis of the Republic of Cyprus´ EU accession negotiations process (Part 2). It also covers the impact (or lack thereof) of various reunification plans, and most notably what is seen as the culmination of such efforts in the so-called 2002–2004 Annan Plans. The following section presents an assessment of how Cyprus has fared as a member state since it joined the EU (Part 3). It covers several key questions regarding the EU–Cyprus relationship. Whereas this article is not about the Cyprus problem itself, but as will be made clear throughout this study, it remains the dominant issue for the island. Others issues encompass EU relations with the Turkish-Cypriot community, the question of Turkey´s EU accession, the impact of the economic crisis of 2013, as well as energy security considerations following the discovery of gas in the region. The study concludes that being in the EU offers better perspectives for the Republic of Cyprus than if it had been kept outside it. If only because as the Accession Treaty makes it clear: it is the whole island that has joined the EU albeit the acquis communautaire cannot apply to the north, occupied, part of the Island following the invasion by Turkey. But all Cypriots are EU citizens. Yet, to a large extent, the experience of Cyprus prior to and after EU membership also reflects the kind of specific problems that a “small state” is facing in its international relations.

Article

The Western Balkans and the European Union  

Gentian Elezi

The European integration process of the Western Balkans has been experiencing considerable stagnation since 2010, although the regional states have been formally following the accession stages. In spite of the remarkable achievements in the 2000s in terms of stability and engagement in reforms, the European Union (EU) conditionality policy is experiencing shortcomings in terms of tangible impact. Due also to its internal problems, the EU appears to have lost its shine in influencing domestic political agendas of the Western Balkan countries as in the case of Central and Eastern Europe (CEE) and has gradually lost the support of citizens in the region. This has had several consequences in terms of rising authoritarian practices, slowing down EU-related reforms and compliance with the acquis, some return to nationalistic rhetoric, and openness to influences of other global actors from the East, which do not necessarily maintain good relations with the EU. The enlargement fatigue that has affected the EU since the 2008 global crisis has had repercussions inside the EU institutions and domestic politics of member states. These changes have been reflected in the Union’s approach towards accession countries, undermining the credibility of the integration process and its commitment to the Western Balkans. The weakening of credibility and predictability on this path, together with the poor state capacities that characterize the Western Balkans, have produced some regress of the democracy indicators. The EU, with its conditionality, is still a determining factor in the trajectory of the countries of the region. However, there is a need to renew the commitments undertaken on both sides in order to make sure that the European perspective, stability, and democratization in the Western Balkans are irreversible and properly supported. The European Union is still considered the only game in town, but it has to face up to the enlargement fatigue and return to its leading role as an aspirational model for the Western Balkans.

Article

Chile and the European Union  

Maria Garcia

Official relations between Chile and the European Union (formerly the European Communities) date back to 1967 when the two parties first opened diplomatic representations in Brussels and Santiago, respectively. As Chile transitioned to a democratic polity from 1990, the relationship deepened. Reflecting the EU’s support for democratization in Latin America, both parties formalized ties through the signing of a Cooperation Framework Agreement in 1991 and a Framework Agreement on Trade and Economic Cooperation in 1996. The latter set Chile and the EU on the path to eventually negotiating an Association Agreement, including a preferential trade agreement (PTA), between 1999 and 2002. The Association Agreement has been in force since 2003, and in 2017 Chile and the EU decided to launch negotiations to modernize the preferential trade agreement part of the Association. The bilateral relationship, and its study, have been defined by three key areas: (1) political relations, (2) cooperation relations, and (2) economic relations. The political and cooperation ties between the two parties have, in turn, been determined by two strands of EU external policies: (1) the EU’s overarching approach toward relations with Latin America, and (2) the evolution of the EU’s development policy. Economic relations, for their part, cover rising trade flows and increasing investment (especially EU foreign direct investment outflows and stocks in Chile). Chile’s attractiveness, despite its relatively small economy and population, derives from its specific political economy. Chile’s painful market reforms under the Pinochet regime set it on a path of greater economic openness than its neighbours. Democratic governments since 1990 have continued policies of trade liberalization, low tariffs, and active engagement in the creation of a dense network of global preferential trade agreements with Chile at its center as a gateway to Latin America. This has helped to diversify Chilean trade relations away from overreliance on the EU or the United States, and has made Chile an attractive target for foreign investment. The trade agreement part of the Association Agreement ushered in deeper economic ties, and a body of scholarly analyses of the agreement and its impacts has slowly emerged. Relations with Chile have formed part of the EU’s broader strategy toward Latin America, rather than independent EU strategy. Initial steps toward an Association Agreement were within the context of negotiations for an Association Agreement between the EU and MERCOSUR (the Common Market of the South). Analysis of the EU–Chile relationship has, as a result, tended to be sparse and to be included as a subsection in studies of broader EU–Latin America relations, and especially EU–MERCOSUR relations. Nevertheless, the relationship represents a positive example of successful engagement with a relatively like-minded partner in a mature association, and demonstrates the extent of and possibilities for EU foreign policy engagement. Moreover, the relationship has served as a testing ground for new types of projects and collaborations and for mutual learning, such as the parties’ joint projects on increasing gender representation in politics, or the inclusion of gender clauses, for the first time in an EU preferential trade agreement, in the modernization of the EU–Chile agreement.

Article

Russia and the European Union  

Tom Casier

Relations between the European Union (EU) and Russia have gone through a dramatic journey from close partnership to confrontation. The narratives of the crisis that erupted over Ukraine in late 2013 and early 2014 are diametrically opposed. The root causes of the crisis are primarily related to colliding visions of the European order that have existed ever since the end of the Cold War. Yet, to understand why the escalation happened at that time, one also needs to understand the dynamics of a process of increasing tensions and dwindling trust. The Ukraine crisis was thus both the outcome of an escalation of tensions and a radical rupture. In the run-up to the Ukraine crisis (2003–2013), EU–Russia relations were characterized by a Strategic Partnership. The latter was launched in 2003, closing a decade of asymmetrical EU-centric cooperation and redressing the balance in a formally equal partnership, based on pragmatic cooperation and a recognition of mutual interests. Despite high aspirations, the Strategic Partnership gradually derailed into a logic of competition. Tensions eventually crystallized around colliding integration projects: the Eastern Partnership (aiming at Association Agreements) on the EU’s side and the Eurasian Economic Union on Russia’s side. The crisis erupted specifically as the result of the choice Ukraine had to make between the two options. This choice radicalized the negative geopolitical reading that Moscow and Brussels had gradually developed of each other’s behavior. Since the start of the Ukraine crisis (2014), EU–Russia relations have been characterized by a harsh confrontation in the field of high politics. The Strategic Partnership was suspended and the EU imposed sanctions in response to Russia’s annexation of Crimea and destabilization of Ukraine. Moscow retaliated and relations became highly acrimonious. Security-related issues dominate the agenda: Russia accuses the West of neo-containment, while Moscow is blamed for undermining the pan-European border regime and security order. The stalemate between Russia and the EU (and by extension the Euro-Atlantic Community) is ambivalent. On the one hand, it has taken the form of a systemic crisis, where both parties risk running from incident to incident in the absence of effective pan-European instruments that may constrain or reverse the conflict. On the other hand, in the field of low politics, in particular trade and energy, business often seems to continue as usual.

Article

The United Kingdom and the European Union  

Alasdair Blair

Since the end of World War II a key question that successive U.K. governments have faced is what position the country should occupy in global affairs. Such a question stemmed from the legacy of Empire, which both offered global connections and at the same time financial demands in terms of the need to maintain a global footing. These issues came to a head when the United Kingdom applied (unsuccessfully) to join the European Community (the forerunner of the European Union (EU)) in the 1960s when the country was reappraising its position in the world. And while the United Kingdom eventually joined the Community in 1973, there remained an underlying skepticism about membership within the public at large as well as within sections of the Conservative and Labour parties. This suspicion gained more traction from the 1990s onward as the then EU appeared to be moving to a deeper level of integration in the wake of the Maastricht Treaty. This spurred on Euroskeptics in the United Kingdom to campaign for independence. To put a lid on this pressure for reform, David Cameron held a referendum on U.K. membership in 2016. His gamble that this would once and for all seal the United Kingdom within the EU by closing down the issue of withdrawal did not actually materialize, as the electorate voted to leave, which in turn set the country on a path to depart the EU in 2020. Yet, despite these developments, just as was the case in 1945, the United Kingdom is in many ways still searching for a role in the world in 2020.

Article

Malta and the European Union  

Roderick Pace

Fifteen years ago Malta joined the European Union (EU) and four years later in 2008 it joined the Economic and Monetary Union. Throughout this period its economy performed exceptionally well, to the extent that it managed to escape the worse ravages of the Great Recession. In general, the majority of the Maltese people support EU membership. Rapid economic growth has produced a general “feel good” sentiment, which is not, however, shared by everyone. The Maltese political system has been dominated for many years by two parties, the Partit Nazzjonalista and the Labour Party, the only ones to elect candidates to the national parliament since 1966. In 2003, the Labour Party, which had opposed EU membership for many years, changed its policy. This brought the curtain down on parliamentary Euroscepticism in the country. In the meantime, economic success has meant that populist small parties have not been able to gain much traction with the electorate, and the established political parties were not dethroned by populist upsurge as happened in most of the rest of southern Europe. Growth has not led only to benefits, however. The construction sector is putting pressure to bear on scarce land resources, and the influx of foreign labor and a growing demand for housing have inflated rents and housing prices, often beyond the reach of lower income households. Unemployment stands at a low 3.8%, but more people are close to the poverty line. Malta is failing on some of the national targets of the Europe 2020 strategy. These challenges will have to be watched more closely in the years to come should this rate of growth be maintained.

Article

Enlargement Policy and European Union Politics  

Eli Gateva

Enlargement has always been an essential part of the European integration. Each enlargement round has left its mark on the integration project. However, it was the expansion of the European Union (EU) with the 10 Central and Eastern European countries (CEECs), Cyprus, and Malta, unprecedented in scope and scale, which presented the EU with an opportunity to develop a multifaceted set of instruments and transformed enlargement into one of the EU’s most successful policies. The numerous challenges of the accession process, along with the immensity of the historical mission to unify Europe, lent speed to the emergence of the study of EU enlargement as a key research area. The early studies investigated the puzzle of the EU’s decision to enlarge with the CEECs, and the costs and benefits of the Eastern expansion. However, the questions about the impact of EU enlargement policy inspired a new research agenda. Studies of the influence of the EU on candidate and potential candidate countries have not only widened the research focus of Europeanization studies (beyond the member states of the Union), but also stimulated and shaped the debates on the scope and effectiveness of EU conditionality. Most of the analytical frameworks developed in the context of the Eastern enlargement have favored rational institutionalist approaches highlighting a credible membership perspective as the key explanatory variable. However, studies analyzing the impact of enlargement policy on the Western Balkan countries and Turkey have shed light on some of the limitations of the rationalist approaches and sought to identify new explanatory factors. After the completion of the fifth enlargement with the accession of Bulgaria and Romania in 2007, the research shifted to analyzing the continuity and change of EU enlargement policy and its impact on the candidate and potential candidate countries. There is also a growing number of studies examining the sustainability of the impact of EU conditionality after accession by looking into new members’ compliance with EU rules. The impact of EU enlargement policy on the development of European Neighbourhood Policy (ENP) and comparative evaluations of the Union’s performance across the two policy frameworks have also shaped and expanded the debate on the mechanisms and effectiveness of the EU’s influence. The impact of the Eastern enlargement on EU institutions and policymaking is another area of research that has emerged over the last decade. In less than two decades, the study of EU enlargement policy has produced a rich and diverse body of literature that has shaped the broader research agendas on Europeanization, implementation, and compliance and EU policymaking. Comprehensive theoretical and empirical studies have allowed us to develop a detailed understanding of the impact of the EU on the political and economic transformations in central and eastern Europe. The ongoing accession process provides more opportunities to study the evolving nature of EU enlargement policy, its impact on candidate countries, the development of EU policies, and the advancement of the integration project.

Article

Germany and the European Union  

Simon Bulmer

The Federal Republic of Germany (FRG) was a founder member of the European integration process, namely the European Coal and Steel Community (ECSC) created in 1952. However, the circumstances were very different from the 2010s. Germany was a divided and defeated state until 1990. Integration provided important political and economic support to West Germany. From the 1970s, it strengthened the FRG’s foreign policy reach, for the new state was constrained by Cold War politics as well as other legacies, notably the Holocaust. European integration provided a framework for building trust with western neighbors, particularly France. The collapse of the German Democratic Republic (GDR) in 1989 and its absorption into the FRG through unification in 1990 brought about significant change to Germany’s relationship to European integration. The unified Germany became the largest member state. Initial concerns about German power in Europe were allayed by Chancellor Helmut Kohl pursuing deeper integration to bind the unified Germany further to integration: through creating the European Union (EU) itself and setting a course toward monetary union. Specific concerns about German power only really emerged in the 2010s, as the EU was bedeviled by several crises. In seeking to offer a comprehensive understanding of Germany’s relationship with the EU, coverage is organized around four broad themes: the historical dimension of the relationship; the substance of Germany’s European policy; the sources of Germany’s European policy; and Germany’s role and power in the EU. The historical dimension of Germany’s relationship with European integration is important as a first theme. It is no exaggeration to suggest that European integration helped emancipate the FRG from the historical legacy of turbulent relations with France, Nazi tyranny, and the opprobrium of the Holocaust. European integration afforded a complementary framework for Germany’s political and economic order. The importance of embedding German unification in a context of European integration should not be underestimated. Germany’s European policy has displayed considerable consistency up to the contemporary era. Support for further integration, for enlargement, the market order, and the development of an EU “civilian power” have been key components. These policies are important contributors to understanding Germany’s role in the EU: the second theme. The political and economic system of the FRG forms an important backdrop to understanding Germany’s policy and role in the EU: the third theme. From the 1960s until the 2010s, EU membership was subject to cross-party consensus and permissive public support. These circumstances allowed the federal government autonomy in pursuing its European policy. However, the political climate of European policy has become much more contested in the 2010s. Germany’s role was placed in the spotlight by the succession of crises that have emerged within the EU and in its neighborhood in the 2010s, particularly the eurozone and migration crises. The fourth theme explores how the question of German power re-emerged. These four themes are important to understanding Germany’s role in the EU, especially given Berlin’s centrality to its development.

Article

Aid, Political Conditionality, and Other International Efforts to Support Democracy in Africa  

Christine Hackenesch

Support for democracy, human rights, and good governance reforms in Africa has become a prominent objective in engagement by European Union (EU) institutions, EU member states, and the United States with African countries since the early 1990s. Western actors have gradually increased democracy aid, used sanctions, and developed a range of other instruments to support political reforms on the continent. Academic research has analyzed the “substance” and “content” of political reforms that Western actors seek to promote, what instruments they use, and how effective these instruments are in different political contexts. This body of work comes to mixed conclusions as to whether and under what conditions external support has contributed to democratic reforms in African countries between 1990 and 2015. Yet, evidence suggests that external democracy support has made some positive contributions and has been more effective in Africa compared to other regions. However, after a period of 25 years during which democracy support gradually became an important element in the United States’ and European cooperation with African countries, this agenda is now under considerable pressure. Domestic challenges to democracy within Europe and the United States, domestic dynamics in African countries, and the rise of China as an alternative political model make it difficult for European and other external actors to contribute to political reforms on the continent. In this new era of uncertainty, there are three main areas to which policymakers as well as academic research should pay more attention. First, more debate is needed how the contestation of democratic norms in Europe and the United States affects not only the legitimacy but also the decision-making processes on democracy support. Second, more research is needed how urbanization, demographic change and digitalization and their combined effects influence political reforms in Africa and what implications emerge for democracy support. Finally, how China’s more proactive and assertive foreign policy will affect democracy support in Africa is an area that policy-makers and researchers should follow closely.

Article

Belgium and the European Union  

Edith Drieskens

Belgium is one of the six founding members of European integration, but it is often seen as a special one. In both policy and research, the country is widely known as the “heart of Europe.” It even sells itself to the outside world in this way. This metaphor has a double meaning, a literal and a figurative one. First, Belgium’s capital, Brussels, qualifies as the unofficial capital of the European Union. This meaning is strongly supported by facts, with the city hosting the most numerous and the most important institutions. The second meaning requires more detailed consideration. Indeed, and second, Belgium is perceived to be the most European of all European countries, even prepared to exchange sovereignty for supranationalism at any time and any price. A closer look at data, decisions, and developments shows, however, that while support for European integration is widespread, it is not omnipresent either in time or in place. Particularly in Flanders, the northern part of the country, support has been less obvious than elsewhere. Indeed, to understand Belgium and/in the European Union, one also has to understand the functioning of Belgium as a federal state composed of communities and regions, thus as a system of multilevel governance. While it is not the only federation among European Union member states, it uniquely combines a wide variety of federal characteristics. Most importantly here, the gradual process of federalization that Belgium has experienced has given the federated entities a strong voice in European Union decision-making. Member states still need to speak with one voice, however, resulting in a complex system of coordination and representation. The possibilities and realities of this system have attracted quite a lot of scholarly interest. The same goes for the rather fundamental question of whether the European Union and federated entities should be seen as unintended partners in the hollowing out of the federal state or whether the opposite holds true and the European Union is coming to Belgium’s rescue. The jury is still out on this, though the answer seems to be growing more and more complex as time passes.

Article

Key Actors in the Management of Crises: European Union  

Arya Honarmand and Mark Rhinard

In Europe, the management of severe, cross-border crises is shared increasingly among actors and institutions at local, national, and supranational governance levels. The supranational political system of the European Union (EU) allows for substantial delegation of collective powers for public policymaking—and that delegation extends to crisis-management-related policies. Those policies and the crisis management “capacities” they lead to, however, are diverse and fragmented. They span the EU’s institutions, cover multiple sectors, and reflect different degrees of EU legal competence. The European Commission and its agencies house and manage most crisis-related policies, while the Council of Ministers of the European Union has its own capacities and provides a degree of political direction. EU agencies, and the European External Action Service (since 2010), contain yet more crisis-management-related capacities. These developments have grown mainly through crisis-driven expansion, albeit in an incremental and dispersed way, followed by consolidation. Scholars from the fields of international relations, public administration, and security studies have been slow to identify these developments. New research is needed on the subtle dynamics driving policy growth, the effectiveness and efficiency of these arrangements, and the comparative dimension with other regional crisis management systems in the world.

Article

Climate Policy in European Union Politics  

Tom Delreux and Frauke Ohler

The fight against climate change has become a major area of action for the European Union (EU), both at the European and the international level. EU climate policy has gained importance since the 1990s and is today the most politicized issue on the EU’s environmental agenda. The EU is often considered a frontrunner—even a leader—in the adoption of climate policies internally and the promotion of such policies externally. Internally, the EU has developed the world’s most advanced and comprehensive regulatory frameworks, encompassing both EU-wide policies and targets to be achieved by the member states. The actual EU policy instruments fall into two categories: whereas emissions in certain industrial sectors are reduced through a carbon market and a “cap-and-trade” system (the Emissions Trading Scheme), emissions from non-ETS sectors are addressed through domestic policies by member states. These measures have led to a reduction of greenhouse gas emissions in the EU, but they will not suffice to achieve the EU’s long-term goals, which requires a major overhaul of some of the basic premises of the EU’s policies in sectors such as energy production and consumption, transport, agriculture, and industry. Externally, the EU has been advocating ambitious and legally binding international climate agreements. Desiring to “lead by example”, the EU has been an influential global climate player at important international climate conferences such as those held in Kyoto (1997), Marrakesh (2001), and Paris (2015), but its diplomacy failed at the Copenhagen conference (2009).

Article

Humanitarian Aid and the European Union  

Francesca Pusterla and Elia Pusterla

The European Union Humanitarian Aid Policy (EUHAP) operates through the European Commission’s Civil Protection and Humanitarian Aid Operations Department (DG ECHO) in international humanitarian crises to help victims of man-made atrocities and natural catastrophes worldwide. EUHAP is a subject of vibrant debates given its sensitive scope of intervention and institutional uniqueness. This results, first, in discussions of the reason and legitimacy of humanitarian aid as well as the goals and impact on domestic politics of both donors and recipients. Second, EUHAP is institutionally provided with parallel competences that allow simultaneous and autonomous interventions of the European Union and Member States in humanitarian crises. This means that the EU and Member States can formally carry out independent humanitarian aid without obligation to coordinate. This makes EUHAP particularly relevant regarding the role of the EU as a humanitarian aid provider, the relations between the EU and Member States, the policy governance, and the policy implementation principles. First, coordination and cooperation between the EU and Member States are de facto essential, given the collective nature and global effects of humanitarian crises. Shared competence regulation through EUHAP may enhance the effectiveness of joint operations, overcome inefficient division of labor, and avoid divergence between intervention expected outcome and real performance. Second, parallel competences give to the EU the formal competence to carry out humanitarian actions and conduct a common policy, while Member States’ autonomous actions are not prevented. Indeed, despite the undeniable benefits of multilateral intervention, Member States may opt for bilateralism due to concerns for domestic autonomy and sovereignty breaches. Such collective action problems risk affecting policy coherence and effectiveness. Third, policy governance can make the difference in an effective and coherent EUHAP. This depends on the successful coordination of involved actors to avoid overlapping interventions, dispersion of resources, and particular political, economic, and bureaucratic interests to prevail. In so doing, Member States access the benefits of centralized coordination, monitoring, and division of labor and also avoid autonomy and sovereignty breaches. Fourth, the application of a costs/benefits rationale to common humanitarian interventions is not per se sufficient to ground and overcome the drawbacks of collective action and explain EUHAP. As per its Treaties, or in line with international humanitarian law, the EU adopts and pursues a humanitarian aid policy based on shared principles of solidarity, humanity, impartiality, independence, and neutrality.

Article

The Economic and Monetary Union (EMU)  

Lucia Quaglia

The Economic and Monetary Union (EMU) is one of the most important policy areas of the European Union (EU). Academic research on EMU in political science is well established and ever-evolving, like EMU itself. There are three main “waves” of research on EMU, which have mostly proceeded in a chronological order. The first wave of scholarly work has focused on the “road” to EMU, from the setting up of the European Monetary System in 1979 to the third and final stage of EMU in 1999. This literature has explained why and how EMU was set up and took the “asymmetric” shape it did, that is to say, a full “monetary union,” whereby monetary policy was conducted by a single monetary authority, the European Central Bank (ECB), but “economic union” was not fully fledged. The second wave of research has discussed the functioning of EMU in the 2000s, its effects and defects. EMU brought about significant changes in the member states of the euro area, even though these effects varied across macroeconomic policies and across countries. The third wave of research on EMU has concerned the establishment of Banking Union from 2012 onward. This literature has explained why and how Banking Union was set up and took the “asymmetric” shape it did, whereby banking supervision was transferred to the ECB, but banking resolution partly remained at the national level, while other components of Banking Union, namely a common deposit guarantee scheme and a common fiscal backstop, were not set up. Subsequently, the research has begun to explore the functioning of Banking Union and its effects on the participating member states.

Article

The Banking Union in Europe  

Lucia Quaglia

The banking union is considered to be one of the main steps in economic integration in the European Union. Given the rather recent establishment of this policy, academic research on the banking union does not have a long lineage, yet it is an area of bourgeoning academic enquiry. There are three main “waves” of research on the banking union in political science, which have mostly proceeded in a chronological order. The first wave of scholarly work focused on the “road” to banking union, from the breaking out of the sovereign debt crisis in the euro area in 2010 to the agreement on the blueprint for the banking union in 2012, explaining why it was set up. The second wave of literature explained how the banking union was set up and took an “asymmetric” shape, whereby banking supervision was transferred to the European Central Bank (ECB); however, banking resolution partly remained at the national level, whereas other components of the banking union, namely, a common deposit guarantee scheme and a common fiscal backstop, were not set up. The third wave of research discussed the functioning of the banking union, its effects and defects. The banking union has slowly brought about significant changes in the banking systems of the member states of the euro area and in government–business relations in the banking sector, even though these effects have varied considerably across countries.

Article

Subsidiarity as a Subject of Battle in European Union Politics  

Kees van Kersbergen and Bertjan Verbeek

Since the Maastricht Treaty (1993), subsidiarity has guided the political process surrounding the distribution of competences between administrative layers in the European Union (EU). The EU’s subsidiarity regime affects the politics and governance of the EU, because the notion of subsidiarity allows for continuous negotiation over its practical use. The constant battle over subsidiarity implies that the notion changes its meaning over time and alters the power relations between different actors within the EU. Since the Lisbon Treaty (2009), subsidiarity has mainly strengthened the position of member states at the expense of the Commission.

Article

North Atlantic Treaty Organization (NATO) and the European Union  

James Sperling and Mark Webber

Neither NATO nor the EU are full-spectrum security providers. They are complementary institutions with offsetting strengths and weaknesses. The EU, unlike NATO, has treaty-based legislative prerogatives enabling it to implement common policies on a pan-European basis that touch upon both internal and external components of security. It also commands substantial technical and financial resources devoted to coherent regional security strategies. But if the EU is the more capable actor where security threats have a substantial civilian component, it is NATO that retains an unchallenged primacy on matters of collective defense and deterrence. Together, the two organizations function as agents of collective securitization across a wide range of issues to shape the security agenda and the allocation of national resources. The institutional interlocking of NATO and the EU has evolved over the course of the post–Cold War period. In most cases, the development of the EU as a security actor has not impeded NATO or undermined the cohesion of the alliance. Such complementarity can be demonstrated by reference to defense-related institutions within the EU that reinforce NATO efforts, the emergence of a “fuzzy” division of labor between both bodies, and an operational level of ambition derived from their security strategies. Institutional complementarity is evidenced by two empirical cases: the eastward and southern enlargements of the EU and NATO and out-of-area military and civilian operations beginning with the Balkan wars in the mid-1990s.

Article

Sweden and the European Union  

Karl Magnus Johansson

Membership in the European Union (EU) entails adjustments or changes in national democracies. Sweden joined the EU in 1995, and EU membership has given rise to controversies in the public debate as well as in the academic community. In an effort to legitimize membership in the public debate, the consequences in terms of sovereignty were summarized in the official Swedish discourse on EU membership as a loss in formal sovereignty but an increase in real sovereignty. This entailed a reinterpretation of popular sovereignty, as stipulated by the Swedish constitution, as well as of democracy, implying that efficiency or problem-solving capacity was emphasized more than procedural democracy. The controversy surrounding the question of influence came to the fore in connection with the euro referendum in 2003. While some argued that remaining outside the euro would come with a political price—marginalization—others emphasized the lack of evidence for such effects. To some extent, this remains a moot point, not least as a result of the expansion and importance of the euro zone. Another salient question is whether or not there is political opposition, that is, conflict rather than consensus in EU affairs. Research claims that (allegedly almost nonexistent) previous research had underestimated the degree of political opposition or conflict, notably in parliament. Moreover, results suggest that there is variation in EU opposition across time and policy areas. In addition there are different interpretations of either decentering or centering effects. Whereas some claim that fragmentation or decentralization is the central feature of the Europeanization of the Swedish state, other researchers submit that the predominant tendency is rather centralization, as the demands of EU decision making—not least EU summitry—on national policy coordination have been a principal driving factor in this process. These are main themes in the debate over the EU and EU membership in Sweden. Included here are a series of analytical narratives and counternarratives, as well as a discussion of important implications for the national democracy and for the distribution or redistribution of power among domestic political actors therein.

Article

Iran and European Union Politics  

Sebastian Harnisch

The Islamic Republic of Iran and the European Union (EU) have not yet established formal diplomatic relations, but since 1979 the Union and its member states have had various strong if often conflictual interactions. The relationship has been marked by distinct phases that reflect the emerging character of the partners, a theocratic republic on the one hand and a Union of interdependent democratic states on the other. While mutual economic interests have formed the basis for substantial interactions, relations with member states and the EU itself have been colored by a long and sometimes hurtful history of European states’ role in Iranian politics, including the Russian and British imperial influence over Persia in the late 19th and early 20th century, the British (and American) involvement in the coup against democratically elected Prime Minister Mohammad Mosaddeq in 1953, and the French hosting of Ayatollah Ruhollah Khomeini, an avowed critic of the Pahlavi dynasty, prior to the anti-authoritarian revolution in 1979. Over time, the relationship has substantially shaped the character and direction of the politics of the EU’s common foreign and security policy, resulting in more policy coherence between member states and the EU, more policy autonomy, particularly vis-á-vis the United States, and more proactive behavior, such as during the nuclear negotiations leading to the Joint Comprehensive Plan of Action (in 2015). By engaging with a problematic member of the nonproliferation treaty, the EU not only specified and thus strengthened the treaty, but it also grew into an international nonproliferation actor to reckon with.